State revokes sergeant's unemployment

Employee argued the city's DROP program made his departure involuntary

The state has reversed an administrative law judge who last year awarded jobless benefits to a San Diego police sergeant even after he retired from the department with a $107,000 annual pension for life and $572,000 in a special retirement account.

The decision by the Unemployment Insurance Appeals Board will cost former Sgt. Jorge Leon between $17,000 and $20,000 of unemployment payments. It's a significant win for City Attorney Jan Goldsmith, who expressed outrage and frustration with the earlier ruling.

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The City Attorney’s Office has not commented on the ruling. It is not clear how the decision will affect a Superior Court case filed by the city in October, seeking to revoke certain retirement benefits as a result of the unemployment grant.

Leon, who did not return messages from the U-T, enrolled in the city's deferred retirement option program or DROP in 2008. Participants collect retirement payments in a special account for up to five years while still collecting a city paycheck, but they are required to leave employment after five years.

While Leon was in the program, the city changed some of its terms, including a reduction in the guaranteed interest paid on funds in the special account. When his five years were up, Leon argued, his retirement was no longer what was promised and his departure from the city was therefore involuntary, allowing him to collect unemployment.